A new survey from Greenwich Associates has estimated that financial service firms and technology providers across the globe will spend over $1 billion in 2016 in order to bring blockchain to capital markets, according to a Bloombergarticle.

Among firms that have some ongoing blockchain initiatives, 32 percent have an annual budget in excess of $5 million per year, and a further 15 percent have budgets in excess of $2 million. "Projected across the entire financial services industry, that level of spending will likely top $1 billion in 2016," Greenwich says.

Of 134 market participants interviewed by Greenwich, including executives at banks, exchanges, asset managers and blockchain technology companies, most think that blockchain technology has the potential to transform global capital markets within the next five years. Richard Johnson, Vice President for Greenwich’s Market Structure and Technology group, said the financial sector will continue putting its weight behind the technology in 2016 because "blockchain is beginning to prove itself fit for purpose in capital markets."

A majority of the study participants believe blockchain has significant potential to reduce operational costs and shorten settlement times and rank payments as the most promising area for blockchain application. In addition, they see "vested interests" in legacy technology systems as the primary obstacle hindering blockchain adoption.